AeroVironment (NASDAQ: AVAV) and Bba Aviation (OTCMKTS:BBAVY) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Bba Aviation pays an annual dividend of $0.57 per share and has a dividend yield of 2.4%. AeroVironment does not pay a dividend. Bba Aviation pays out 59.4% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares AeroVironment and Bba Aviation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AeroVironment||$264.87 million||4.08||$12.47 million||$0.54||83.76|
|Bba Aviation||$2.37 billion||2.03||$119.40 million||$0.96||24.31|
Bba Aviation has higher revenue and earnings than AeroVironment. Bba Aviation is trading at a lower price-to-earnings ratio than AeroVironment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
AeroVironment has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Bba Aviation has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for AeroVironment and Bba Aviation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AeroVironment currently has a consensus price target of $39.50, indicating a potential downside of 12.67%. Given AeroVironment’s higher possible upside, equities research analysts plainly believe AeroVironment is more favorable than Bba Aviation.
Insider & Institutional Ownership
74.8% of AeroVironment shares are owned by institutional investors. Comparatively, 0.1% of Bba Aviation shares are owned by institutional investors. 11.0% of AeroVironment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares AeroVironment and Bba Aviation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AeroVironment beats Bba Aviation on 9 of the 16 factors compared between the two stocks.
AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.
About Bba Aviation
BBA Aviation plc provides aviation support and aftermarket services to the business and general aviation (B&GA) markets in the United Kingdom, Mainland Europe, North America, and internationally. It operates through Flight Support and Aftermarket Services segments. The company operates Signature Flight Support, a fixed base operation network that offers service support for B&GA travel, including office rentals and other technical services, fuelling, ground handling, passenger and pilot services, and amenities; hangarage for resting and at home aircraft; technical support, line maintenance, and aircraft on ground services through Signature TECHNICAir; and aircraft management and charter services through Gama Aviation Signature Aircraft Management to the passengers, operators, and pilots of the B&GA fleet. It also provides a portfolio of licensed parts and MRO services, including equipment, components, and spare parts for maturing and legacy platforms; transforms on-core products from original equipment manufacturers (OEMs); and provides maintenance, repair, and overhaul services for commercial, B&GA, and military fixed wing and rotorcraft platforms to original equipment manufacturers (OEMs) and their customers. In addition, the company offers engine repair and overhaul services, such as full engine overhaul, scheduled engine repair, on-wing in-field repair, aircraft-on-ground support, engine accessory part, and component repair services to private and commercial operators of aircrafts in the B&GA, regional airline, and rotorcraft fleets. BBA Aviation plc was founded in 1879 and is headquartered in London, the United Kingdom.
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